Rent Adjustment. Basic Assumptions Incorrect. Except to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "Repositioning"), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days.
Appears in 5 contracts
Samples: Hotel Lease Agreement (Apple Suites Inc), Master Hotel Lease Agreement (Apple Hospitality Two Inc), Master Hotel Lease Agreement (Apple Suites Inc)
Rent Adjustment. Basic Assumptions Incorrect. Except (a) Notwithstanding any provisions to the extent that doing so would cause Lessor contrary contained in this Lease, Tenant shall pay to recognize income other than "rents from real property" Landlord as defined in Section 856(d) minimum rent for the second Lease Year of the Codeterm of this Lease, notwithstanding anything herein (and for each subsequent Lease Year of said term, but subject to further increase pursuant to this Section 2.04 and other than Article 19) provisions of this Lease, the greater of the amounts calculated according to the contrary, if formulas set forth in Paragraphs (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "Repositioning"), and (ii) Lessor below.
(i) Minimum rent for the Lease Year in question shall be increased by three percent (3%) over the minimum rent in effect for the prior Lease Year.
(ii) Minimum rent for the Lease Year in question shall be increased by the amount of percentage rent payable for the immediately preceding Lease Year pursuant to Section 2.02 hereof.
(b) For the purposes of this Section, the percentage rent payable by Tenant for any Lease Year consisting of less than twelve (12) full calendar months shall be calculated by dividing the percentage rent payable by Tenant for such Lease Year pursuant to Section 2.02 hereof by the actual number of days in such Lease Year, and Lessee so agree by multiplying the resulting quotient by 365. Landlord shall notify Tenant of the increased minimum rent for each Lease Year following the determination of same by Landlord, and Tenant shall pay such increased minimum rent for the applicable Lease Year in writingthe manner set forth in Section 2.01 hereof. In the event that the increase in minimum rent results from the calculation set forth above in subsection (a)(ii), then Lessor and Lessee shall, in good faith, negotiate modifications the Minimum Gross Sales otherwise applicable for such period shall be increased by a percentage equal to the Base percentage increase in minimum rent made by reason of the percentage rent payable in the preceding Lease Year. The minimum rent for any period as stated in Section 2.01 hereof, if different than that stated for the immediately preceding period, shall be adjusted by multiplying such different minimum rent (“Changed Rent”) by the cumulative percentage increase in minimum rent pursuant to this Section from the commencement of the term of this Lease through and including the first Lease Year during which such Changed Rent would have become effective, Suite Revenue Breakpoint and Percentage with the resulting product to be added to such Changed Rent to adjust yield the effective minimum rent for such period, subject to further adjustment as provided in this Section or elsewhere in this Lease.
(i.e., increase, decrease c) Upon the opening of any tenant in the regional retail development occupying twenty thousand (20,000) square feet or reallocate among revenue categoriesmore or an expansion of the Shopping Center by twenty thousand (20,000) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days square feet or more after the commencement date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration minimum rent and Minimum Gross Sales then in effect shall be shortened from ninety immediately and automatically increased by fifteen percent (90) days 15%), subject to thirty (30) days.further increases pursuant to this paragraph, this Section and other provisions of this Lease. S3 COMMON AREA CHARGE
Appears in 4 contracts
Samples: Lease Agreement (Impossible Kicks Holding Company, Inc.), Lease Agreement (Impossible Kicks Holding Company, Inc.), Lease (Impossible Kicks Holding Company, Inc.)
Rent Adjustment. Basic Assumptions IncorrectChange in Franchise Affiliation or Change in Scope of Work. Except to the extent that doing so would cause Lessor to recognize income other than "“rents from real property" ” as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, Rent and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the HotelHotel (that were not planned as of the Commencement Date)l, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "“Repositioning"”), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 25.1 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days.
Appears in 4 contracts
Samples: Master Lease Agreement (Moody National REIT I, Inc.), Hotel Lease Agreement (Moody National REIT I, Inc.), Hotel Lease Agreement (Moody National REIT I, Inc.)
Rent Adjustment. Basic Assumptions IncorrectChange in Franchise Affiliation or Change in Scope of Work. Except to the extent that doing so would cause Lessor to recognize income other than "“rents from real property" ” as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, Rent and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the HotelHotel (that were not planned as of the Commencement Date), or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "“Repositioning"”), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint Rent and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 25.1 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days.
Appears in 4 contracts
Samples: Hotel Lease Agreement (Moody National REIT II, Inc.), Hotel Lease Agreement (Moody National REIT II, Inc.), Hotel Lease Agreement (Moody National REIT I, Inc.)
Rent Adjustment. Basic Assumptions Incorrect. Except In the event of a taking of the ------------- --------------- character referred to in Section 14.03, this Lease shall terminate as to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) portion of the Code, notwithstanding anything herein (other than Article 19) to Leased Premises so taken. No such partial taking shall affect the contrary, if Rent payable hereunder unless (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope taking includes or cost of substantial renovations affects leasable or other capital improvements to the Hotelincome producing space, or (Cii) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting taking has or will have, in significant disruption of Tenant's reasonable judgment, an adverse effect upon the operations of the Hotel Leased Premises or Improvements. In either of such events, upon the request of Tenant (collectivelyand payment to Landlord of the payment, a "Repositioning"if any, agreed upon pursuant to Section 14.03), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions payable for the affected periods, using balance of the same methodology Term of this Lease shall be equitably and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after proportionately reduced from the date of written certification from either Lessee such taking. If Landlord and Tenant cannot agree upon the amount of such reduction in Base Rent (or Lessor payment out of Condemnation Proceeds pursuant to Section 14.03), they shall be determined on a consistent basis by an independent appraiser with M.A.I. credentials selected by agreement of Landlord and Tenant or, in the other party that absence of agreement on a good faith dispute existssingle appraiser, as to the existence by an independent appraiser with M.A.I. credentials selected by agreement of the occurrence appraisers appointed (one each) by Landlord and Tenant. Until the amount of a Repositioning or the adjustments to be made to the amounts or percentages for reduction in the Base RentRent has been determined, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee Tenant shall continue to pay Landlord the Base Rent and Percentage provided for herein. Upon determination of the reduction in Base Rent, Tenant shall be entitled to credit the amount by which any Base Rent theretofore paid by Tenant for such period exceeds the amount of the Base Rent for such period as required so reduced against the first installments of Base Rent thereafter payable under Section 3.1 of this the Lease); provided, however, that for purposes if at the time of applying such determination the procedures in Section 25.3 Term has ended or such credit exceeds the amount of all future installments of Base Rent payable hereunder, Landlord shall pay to Tenant an amount equal to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) daysexcess upon demand.
Appears in 2 contracts
Samples: Option Agreement (Hollywood Park Operating Co), Assignment of Option Agreement (Hollywood Park Operating Co)
Rent Adjustment. Basic Assumptions Incorrect. Except In case of termination pursuant to Sections 19.2 or 19.3 above, the Base Rent and Operating Expenses shall be reduced by a proportionate amount based upon the extent to which such damage interferes with Tenant’s ability to operate in the Premises, and Tenant shall pay such reduced Base Rent and Operating Expenses up to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) date of vacation of the Code, notwithstanding anything herein (other than Article 19) Premises; provided that Landlord receives all proceeds of Tenant’s business interruption insurance up to the contraryamount by which Base Rent and Operating Expenses are so reduced, less any rental loss insurance proceeds payable to Landlord from Landlord’s insurance coverage on account of such casualty. If Landlord is required or elects to make repairs, and Tenant does not terminate this Lease pursuant to Section 19.3, this Lease shall remain in full force and effect except that Tenant shall be entitled to a proportionate reduction of Base Rent and Operating Expenses from the date of such casualty and during the period such repairs are being made by a proportionate amount based upon the extent to which such damage interferes with Tenant’s ability to operate in the Premises; provided that Landlord receives all proceeds of Tenant’s business interruption insurance up to the amount by which Base Rent and Operating Expenses are so reduced less any rental loss insurance proceeds payable to Landlord from Landlord’s insurance coverage on account of such casualty. The full amount of Base Rent and Operating Expenses shall again become payable immediately upon the completion of such work of repair, reconstruction or restoration that Landlord is obligated to complete; provided however that, if the damage includes Tenant Improvement Work that Tenant is obligated to repair or replace, the full amount of Base Rent and Operating Expenses shall again become payable on the earlier of (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope when Tenant completes Tenant’s repairs or cost of substantial renovations or other capital improvements to the Hotelreplacements, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "Repositioning"), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days after the completion by Landlord of such work of repair, reconstruction or restoration that Landlord is obligated to thirty (30) dayscomplete and the delivery of the Premises to Tenant for its repair and restoration work. The repairs to be made by Landlord under this Article shall not include, and Landlord shall not be required to repair, any casualty damage to the Tenant Improvement Work, Tenant’s Property or any Alterations.
Appears in 2 contracts
Samples: Commercial Lease (Jazz Pharmaceuticals PLC), Commercial Lease (Jazz Pharmaceuticals PLC)
Rent Adjustment. Basic Assumptions Incorrect. Except to the extent that doing so would cause Lessor to recognize income other than "rents from real property" as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the documented, basic assumptions (as set forth in the Master Hotel Agreement or the schedules thereto) upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Room Revenue Breakpoint, Breakpoint and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a material change occurring after the Commencement Date in the timing (whether as to the commencement, duration and/or completion date) of any Contemplated Renovations that were planned as of the Commencement Date, (B) a decision to re-brand the Hotel that is made after the Commencement Date, (BC) the scope or cost of substantial renovations or other capital improvements (other than Contemplated Renovations that were planned as of the Commencement Date) to the Hotel, or (CD) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "RepositioningREPOSITIONING"), and (ii) Lessor and Lessee so agree in writingwriting (or, with respect to Repositionings (i) during the years 1999 and 2000 or (ii) that are approved by both Lessor and Lessee, are directed to do so by an arbitrator, as set forth below), then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Room Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Room Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Room Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, exists as to the existence of the occurrence of a Repositioning during 1999 or 2000, or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Room Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioningRepositioning, the dispute may be submitted by either party to arbitration under Section 25.2 22.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 22.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days.
Appears in 2 contracts
Samples: Lease Agreement (Felcor Lodging Trust Inc), Lease Agreement (Bristol Hotels & Resorts Inc)
Rent Adjustment. Basic Assumptions Incorrect. Except to the extent that doing so would cause Lessor to recognize income other than "“rents from real property" ” as defined in Section 856(d) of the Code, notwithstanding anything herein (other than Article 19) to the contrary, if (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "“Repositioning"”), and (ii) Lessor and Lessee so agree in writing, then Lessor and Lessee shall, in good faith, negotiate modifications to the Base Rent, Suite Revenue Breakpoint and Percentage Rent to adjust (i.e., increase, decrease or reallocate among revenue categories) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days after the date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration shall be shortened from ninety (90) days to thirty (30) days.
Appears in 1 contract
Samples: Hotel Lease Agreement
Rent Adjustment. Basic Assumptions Incorrect. Except (a) Notwithstanding any provisions to the extent that doing so would cause Lessor contrary contained in this Lease, Tenant shall pay to recognize income other than "rents from real property" Landlord as defined in Section 856(d) minimum rent for the second Lease Year of the Codeterm of this Lease, notwithstanding anything herein (and for each subsequent Lease Year of said term, but subject to further increase pursuant to this Section 2.04 and other than Article 19) provisions of this Lease, the greater of the amounts calculated according to the contrary, if formulas set forth in Paragraphs (i) the facts and circumstances underlying the documented, basic assumptions upon which both Lessor and Lessee have relied in determining the Base Rent, the Suite Revenue Breakpoint, and the Percentage Rent payable hereunder become materially incorrect solely as a result of (A) a decision to re-brand the Hotel that is made after the Commencement Date, (B) the scope or cost of substantial renovations or other capital improvements to the Hotel, or (C) the implementation of any other hotel repositioning strategies (that were not planned as of the Commencement Date) resulting in significant disruption of the operations of the Hotel (collectively, a "Repositioning"), and (ii) Lessor below.
(i) Minimum rent for the Lease Year in question shall be increased by three percent (3%) over the minimum rent in effect for the prior Lease Year.
(ii) Minimum rent for the Lease Year in question shall be increased by the amount of percentage rent payable for the immediately preceding Lease Year pursuant to Section 2.02 hereof.
(b) For the purposes of this Section, the percentage rent payable by Tenant for any Lease Year consisting of less than twelve (12) full calendar months shall be calculated by dividing the percentage rent payable by Tenant for such Lease Year pursuant to Section 2.02 hereof by the actual number of days in such Lease Year, and Lessee so agree by multiplying the resulting quotient by 365. Landlord shall notify Tenant of the increased minimum rent for each Lease Year following the determination of same by Landlord, and Tenant shall pay such increased minimum rent for the applicable Lease Year in writingthe manner set forth in Section 2.01 hereof. In the event that the increase in minimum rent results from the calculation set forth above in subsection (a)(ii), then Lessor and Lessee shall, in good faith, negotiate modifications the Minimum Gross Sales otherwise applicable for such period shall be increased by a percentage equal to the Base percentage increase in minimum rent made by reason of the percentage rent payable in the preceding Lease Year. The minimum rent for any period as stated in Section 2.01 hereof, if different than that stated for the immediately preceding period, shall be adjusted by multiplying such different minimum rent (“Changed Rent”) by the cumulative percentage increase in minimum rent pursuant to this Section from the commencement of the term of this Lease through and including the first Lease Year during which such Changed Rent would have become effective, Suite Revenue Breakpoint and Percentage with the resulting product to be added to such Changed Rent to adjust yield the effective minimum rent for such period, subject to further adjustment as provided in this Section or elsewhere in this Lease.
(i.e., increase, decrease c) Upon the opening of any tenant in the regional retail development occupying twenty thousand (20,000) square feet or reallocate among revenue categoriesmore or an expansion of the Shopping Center by twenty thousand (20,000) such Base Rent, Suite Revenue Breakpoint and Percentage Rent to reflect such change in basic assumptions for the affected periods, using the same methodology and other basic assumptions as were initially utilized in determining the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder. If Lessor and Lessee are unable to agree, within thirty (30) days square feet or more after the commencement date of written certification from either Lessee or Lessor to the other party that a good faith dispute exists, as to the existence of the occurrence of a Repositioning or the adjustments to be made to the amounts or percentages for the Base Rent, Suite Revenue Breakpoint and Percentage Rent hereunder as a result of any repositioning, the dispute may be submitted by either party to arbitration under Section 25.2 hereof for resolution (during which period Lessee shall continue to pay Base Rent and Percentage Rent as required under Section 3.1 of this Lease); provided, however, that for purposes of applying the procedures in Section 25.3 to such arbitration, the target deadline therein for concluding the arbitration minimum rent and Minimum Gross Sales then in effect shall be shortened from ninety immediately and automatically increased by fifteen percent (90) days 15%), subject to thirty (30) days.further increases pursuant to this paragraph, this Section and other provisions of this Lease. S3 Impossible Kicks/Dolphin Mall/03/21/23 COMMON AREA CHARGE
Appears in 1 contract
Samples: Lease Agreement (Impossible Kicks Holding Company, Inc.)